Extension of Existing Loans

RNS Number : 5259X

Infrastructure India plc

27 November 2017

 

27 November 2017

Infrastructure India plc

("IIP", the "Company" and together with its subsidiaries the "Group")

Extensions of Bridging Loan and Working Capital Loan

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that it has agreed a further extension of, and increase in, the US$8.0 million unsecured bridging  loan facility (the "Bridging Loan") provided to the Company in June 2017 by Cedar Valley Financial ("Cedar Valley"); and (ii) an extension of an existing US$21.5 million working capital loan facility (the "Working Capital Loan") with GGIC, Ltd ("GGIC").

The extension of the Bridging Loan and the Working Capital Loan will enable the Company to continue to progress its ongoing financing discussions.

The Company continues to be in advanced negotiations with a third party in relation to a potential financing. Whilst negotiations have taken longer than had been anticipated, these discussions continue to progress. The new funding would enable the Company to repay the Bridging Loan and the Working Capital Loan as well as provide additional working capital and construction capital to Distribution Logistics Infrastructure Limited, a key subsidiary of the Company, and provide for the Group's general working capital needs.

Extension of Bridging Loan

The Company announces that it has agreed a further extension of the Bridging Loan which was previously provided to the Company by Cedar Valley such that a further US$10.0 million has been made available to the Company under the Bridging Loan (the "Additional Funds") and that the maturity date of the Bridging Loan has been extended from on the earlier of: (i) on demand by Cedar Valley; and (ii) 31 December 2017 to the earlier of (i) fifteen days after the completion of the potential financing currently under negotiations; and (ii) 29 June 2018 (the "Bridging Loan Extension").

The additional US$10.0 million has been immediately drawn down by the Company and the Bridging Loan, now totalling US$18.0 million, is fully drawn down.

The Company has paid Cedar Valley a fee of 1.0% of the Additional Funds in connection with the Bridging Loan Extension and the interest rate on the Bridging Loan has increased from 8.0% per annum to 12.0% per annum.

The interest payment which would have been due under the Bridging Loan on 31 December 2017, together with the additional interest accrued from then until maturity of the Bridging Loan has been deferred until repayment of the Bridging Loan in accordance with the revised maturity.  

Extension of Working Capital Loan

The Company also announces that it has agreed an extension of the Working Capital Loan such that the maturity of the Working Capital Loan has been extended from 31 December 2017 to 15 July 2018 (the "Working Capital Loan Extension"). The Working Capital Loan, which carries an interest rate of 7.5% per annum (payable in cash on maturity), is fully drawn down and will now mature on 15 July 2017.

There are no arrangement or commitment fees payable by the Company in relation to the Working Capital Loan Extension.

Related Party Transactions

GGIC is, directly and indirectly, interested in 75.4% of the Company's issued share capital and Cedar Valley is an affiliate of GGIC. Under the AIM Rules for Companies ("AIM Rules"), GGIC and Cedar Valley are, therefore, deemed to be related parties of the Company and the Bridging Loan Extension and the Working Capital Loan Extension are related party transactions pursuant to Rule 13 of the AIM Rules. The independent directors of IIP, M.S. Ramachandran and Timothy Walker, consider, having consulted with Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the Bridging Loan Extension and the Working Loan Extension are fair and reasonable insofar as the shareholders of IIP are concerned.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com Via Cubitt Consulting
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Cubitt Consulting Limited Financial Public Relations Simon Brocklebank-Fowler	[phone]

 

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